Shoe Stories – PT Sepatu Bata Tbk. (BATA) closed its Purwakarta factory and laid off its employees due to recurring losses and falling product demand.
BATA management in the financial report explained the decision to lay off a number of employees at the Purwakarta factory and close the factory was made in response to repeated losses over the past four years as well as declining demand for the types of products produced at the factory.
“Due to the above conditions, the Company has decided to stop production at the Company’s factory in Purwakarta on April 30, 2024. This decision has been approved by the Board of Commissioners, based on a circular decision on April 29, 2024,” wrote management, quoted Friday (6/29/2024).
As a first step, BATA has completed the process of terminating employment contracts and paying severance pay to affected employees amounting to IDR 16.7 billion until May 15 2024.
The financial impact of the termination of this contract will be recorded in the consolidated statement of profit or loss and other Scatter Hitam comprehensive income for the six month period ending June 30, 2024.
In addition, management is evaluating the total impact of this decision on the Group’s financial reporting, demonstrating the company’s seriousness in dealing with the consequences of the move.
As is known, BATA recorded total liabilities of IDR 548.17 billion with details of short-term liabilities of IDR 503.75 billion and long-term liabilities of IDR 44.42 billion. slot online
Meanwhile, BATA’s equity mposlot until the end of March 2023 was recorded at IDR 117.75 billion with total assets reaching IDR 665.93 billion.
Then, BATA recorded a net loss attributable to owners of the parent entity of Rp13.85 billion. This loss was 49.10% lower compared to the same period the previous year which was recorded at Rp27.14 billion.
BATA reported net sales of IDR 11.45 billion during the first quarter of 2024. These sales fell 16.62% compared to the same period last year which was recorded at IDR 136.08 billion.
